1) Explain, give a real life example and a solution for the the 4 Types of Market Failures – 1) Public Goods, 2) Externalities (positive and negative), 3) Monopoly Power, and 4) Inequality. Please use a Reputable Source, (such as the Wall Street Journal, Bloomberg News, The Economist, etc.) to find your real life example.
1) Using the St. Louis Federal Reserve – Fred website: http://research.stlouisfed.org/fred2/search, Find current economic indicators for real GDP, Prices, Inflation, Unemployment and Economic Growth . 2) Download the (Monthly data) for Prices, Inflation and Unemployment and the (Quarterly data) for GDP and Economic Growth for the last 3 years in an excel spreadsheet and insert an excel a graph for each series overtime in a separate graph. 3) Describe each series relationship and comment on whether it is increasing or decreasing and how do they compare to one another.
1) CPI – Consumer Price Index For All Urban Consumers: All Items, SA – seasonally adjusted – (Prices)
2) Percentage change in CPI from a year ago – (Inflation)
3) Civilian Unemployment Rate (Unemployment)
4) Real Gross Domestic Product, 3 Decimal (GDP) – Real GDP
5) Change in Real Gross Domestic Product, (Economic Growth)
1. Calculate and graph what happens to G, AD, GDP, and Prices if the government increases government spending by 100 billion and the MPC = .80.
2. Calculate and graph what happens to T, C, AD, GDP, and Prices if the President raises taxes by 100 billion and the MPC = .80.
3. Calculate and graph what happens to AD, GDP and Prices if the government raises both taxes and government spending by 200 billion and the MPC is equal to .75.
· Go to the Committee for a Responsible Federal Budget website:
· Following the instructions and get the Debt to 80% of GDP in the next 10 years, and 50% by 2050.
· Once you have are done, print the last page that includes the programs that you added or cut and write 1-2 paragraphs about why you should be President based on your budget proposal.